A company has revenue of $800,000, fixed costs of $180,000, and profit of $40,000. Calculate its operating leverage.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...
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A company has revenue of $800,000, fixed costs of $180,000,
and profit of $40,000. Calculate its operating leverage.
Transcribed Image Text:A company has revenue of $800,000, fixed costs of $180,000, and profit of $40,000. Calculate its operating leverage.
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